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(Q3) Define revenues and give three examples of revenue.
Revenues are increases in assets or decreases in liabilities resulting from operations. Example: dividends, interest and royalty paid to a company by another entity.
3. (Q4) Define expenses and give four examples of expenses.
Expenses are the assets used or liabilities incurred in the process of carrying out operations. For example, when a consulting company serves its clients, it incurs different expenses such as: with employee’s salaries, transportation, office supplies and electricity.
4. (Q5) Are the expenses in a period the cash outflows in that period? Explain...
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